Global Capability Centres: challenges in their establishment and growth in India

Vishwang Desai

Global Capability Centres: Challenges in their establishment and growth in India

As India cements its position as a global IT powerhouse, the success of GCCs will be pivotal. Addressing these challenges requires more than just technological solutions: it demands aholistic approach that encompasses infrastructure development, talent management, and adaptive governance.

India's tech frontier faces growing pains. In the bustling tech hubs of India, from Bangalore to Mumbai, a quiet revolution has been unfolding. Global Capability Centres (GCCs), the offshore arms of multinational corporations, have become the backbone of India's IT strength.

The 2019 Mumbai blackout left several GCCs affected, exposing the vulnerabilities in their backup systems. Such incidents underscore the urgent need for robust infrastructure planning. In an era where data is invaluable, GCCs are sitting on veritable goldmines – and cybercriminals know it. A few years ago, a major phishing attack on a large Indian IT company troubled the industry, serving as a stark reminder of the ever-present digital dangers. As these centers handle increasingly sensitive information, the imperative for cutting-edge cybersecurity measures has never been greater. India's vast talent pool is both a blessing and a curse for GCCs.

While the country produces a steady stream of IT graduates, retaining top talent in emerging fields like AI and data analytics has become a difficult task. The IT sector’s ongoing battle with attrition rates is a testament to this industry-wide challenge. As GCCs grow, so do their pains. The rapid expansion by some well-known GCCs brought to light the scalability challenges that many centers face.

The ability to scale operations seamlessly is no longer a luxury but anecessity in the fast-paced digital landscape. With data protection lawsevolving globally, GCCs find themselves navigating a complex regulatorylabyrinth. A large Indian IT company’s GDPR compliance overhaul is justone example of the far-reaching impact of international regulations onIndian operations.

The coexistence of legacy systems with cutting-edge technologies creates a serious technological challenge. A Mumbai-based GCC's struggle to integrate its legacy CRM with a new cloud-based ERP solution highlights the need for seamless technological integration. This diversity not only increases maintenance costs but also creates compatibility nightmares that can cripple operations.

Intellectual property protection in a country still grappling within enforcement mechanisms poses another significant challenge. An incident at a major pharmaceutical company in 2020, where confidential drug development data was stolen by hackers, serves as a cautionary tale for GCCs involved in R&D activities.

When global practices and expectations combine in India, cultural clashes are inevitable. Flipkart's integration with Walmart highlighted the delicate balance GCCs must strike between local practices and global standards.

This cultural tightrope walk extends to technology adoption, where resistance to new tools can hamper productivity and innovation. Even the most advanced tech hubs face risks including natural hazards.

The Chennai floods of 2015 were a reminder that GCCs must factor in environmental risks in their operational strategies.

These natural calamities not only disrupt operations but also expose vulnerabilities in disaster recovery plans. To navigate these turbulent waters, GCCs are adopting multi-pronged strategies. Investing in redundant power supplies and multiple ISPs can mitigate infrastructure risks. State-of-the-art cybersecurity measures, including advanced threat detection systems and regular security audits, are becoming the norm rather than the exception.

On the talent front, GCCs are enhancing their appeal by offering competitive salaries, continuous learning opportunities, and clear career progression paths. Partnerships with educational institutions are being forged to build a sustainable talent pipeline. To address scalability issues, GCCs are turning to cloud solutions that offer the flexibility to expand operations dynamically.

Engagement with local government bodies is helping streamline regulatory processes, while robust data protection frameworks are being built to comply with evolving data privacy laws. The technological diversity challenge is being tackled through rationalization of technology stacks and the use of middleware for interoperability. Rigorous IP rights management and enforcement strategies are being implemented to protect proprietary technologies.

As India cements its position as a global IT powerhouse, the success of GCCs will be pivotal. Addressing these challenges requires more than just technological solutions: it demands a holistic approach that encompasses infrastructure development, talent management, and adaptive governance. The future of GCCs in India stands at a crossroads. Will they rise to meet these challenges, or will they be overwhelmed by the very forces that propelled their growth?

The answer lies in their ability to innovate, adapt, and persevere in the face of these issues. One thing seems clear: the GCCs that will thrive are those that view these challenges not as obstacles, but as opportunities to redefine the very essence of global collaboration in the digital age. The winners will be those who can turn India's unique challenges into their competitive advantage.

Rising Air Pollution Levels: AI'spotential to create cleaner &healthier environment

Experts across industries have proved that AI as a tool can help clean up the planet, reducepollution, lower global emissions and create greener tech.

As India continues to face asevere air pollution crisis,especially in the northernstates, rising air pollution ishaving a devastating effecton human health, theenvironment and theeconomy. The high levels ofpollution can have hazardouseffects on human health,particularly on vulnerable populations, such as the elderly and children.Experts across industries have proved that AI as a tool can help clean upthe planet, reduce pollution, lower global emissions and create greenertech.

AI can play a vital role in combating air pollutionAir Quality Prediction: AI algorithms can analyse data from varioussources, such as weather forecasts, traffic patterns and industrialemissions, to predict air quality levels. AI is assisting scientists inprecisely reading air pollution levels. AI-powered sensors and monitoringsystems can help identify specific sources of pollution, such as industrialsites or vehicles.

Optimising vehicular traffic: AI powered data models are now capable offorecasting air pollution to the street level and detecting violations oflegal limits. AI can also optimise traffic flow and reduce congestion,which will help decrease air pollution from vehicles. Developing Sustainable Solutions: Ai can help in the development of sustainable solutions such as renewable energy systems and green infrastructure to reduce the level of pollutants.

AI Powered Chatbots: In combination with physiological sensors and medical information systems, AI powered chatbots and virtual assistants can raise public awareness about air pollution. AI powered monitoring systems may eventually allow for direct measurements of inhaled pollutant doses which could help vulnerable people to better plan their outdoor activities and avoid hazardous environments.

Across the world, both cities and countries have already implemented AI powered solutions to combat air pollution. Some examples include:

Beijing’s Air Pollution Forecasting System, which provides accurate predictions of air quality up to 10 days in advance.

London’s AI powered air quality monitoring, which helps to monitor air quality and identify sources of pollution.

Singapore’s smart traffic management system, which optimises traffic flow and reduces congestion.

Rising air pollution levels are a pressing concern worldwide. AI can play a vital role in combating this issue and expand the global air pollution.

monitoring network. One should understand, however, that AI is data hungry and for building good AI tools it is necessary to understand what data is available and the information this data contains.

This is not just about deploying cutting-edge technology – it is about survival and accountability. AI has the potential to empower policy makers, urban planners, and even citizens with actionable insights that shift us from reactive measures to proactive solutions. The time has come to act now. By integrating AI driven strategies with policy reforms and public cooperation we can reclaim clean air and safeguard the health and wellbeing of the people.

Political turmoil in Republic of Korea: Current challenges and future scenario

framework. While the situation poses risks of prolonged instability, it also offers an opportunity for leaders to prioritise unity and reform. The path forward will depend on the willingness of political actors to engage in meaningful dialogue and the strength of civil society to demand accountability.

The Republic of Korea, a cultural powerhouse and a country celebrated for its rapid economic development and democratic resilience since the 1980s, is currently grappling with significant political unrest.

This turmoil stems from escalating tensions between the administration of the suspended President Yoon Suk-yeol and opposition parties, coupled with growing public dissatisfaction over governance issues. The situation underscores the challenges faced by the Republic of Korea (ROK) in navigating domestic political divisions while addressing broader economic and geopolitical pressures.

With the country’s liberal opposition party winning a parliamentary majority in April 2024, President Yoon’s popularity had plummeted due to a number of scandals and controversies since he took office in 2022including one involving first lady Kim Keon Hee. The present dispensation has been unable to pass the bills it wanted due to strong opposition from the Democratic Party of Korea (DPK), which controls170 out of 300 Assembly seats. DPK along with other smaller opposition parties together have 192 seats. In an unprecedented move, President Yoon on December 3rd 2024declared martial law, citing national security concerns. He claimed that democracy was in jeopardy, alleging a plot by pro-North Korean sympathizers to overthrow the nation. He emphasised that the rationale behind declaring martial law was to "eliminate anti-state forces that have been involved in destructive acts with plans to overthrow the country."

Political analysts claim that declaring martial law without discussing the matter with ruling People Power Party (PPP) members inevitably meant ‘political suicide’ that not only affects the President but the ruling partyas well. However, parliament swiftly rejected this decision, labelling it authoritarian, thereby President Yoon reversing his decision and announcing that the situation was over and that martial law would belifted. Although the recent martial law declaration caused disturbances, the situation was resolved peacefully, showcasing the resilience of Korean democracy. This event has sparked widespread protests and criticism, with opponents accusing the government of undermining democratic norms. Opposition forces and civic organisations are mobilising against President Yoon. Given the vibrant protest culture and the history of grassroots movements and collective political action in ROK, social media has been stormed by reactions against the imposition of martial law. Protests continued across the country calling for the president to resign and social media users have been reacting online. After his refusal to step down, the National Assembly on December 14,2024 successfully voted to impeach President Yoon Suk Yeol on theirsecond attempt. The fate of President Yoon will be decided by the Constitutional Court, which has up to 180 days to decide whether to uphold or reject the impeachment vote.

In the meantime, Prime Minister Han Duck-soo has taken over as the acting President. If the Constitutional Court upholds Yoon’s impeachment, he would become the shortest serving president in ROK’s democratic history. Election of the new President must then be held within 60 days of the Court’s order.

Earlier on December 7th the opposition members had submitted a bill for the impeachment motion on the President. The motion required the approval of at least two-thirds of Assembly members, which means at least 200 votes out of the total 300. Since 192 of these members belong to the opposition parties, they only needed eight ruling party members to support the bill for the impeachment motion to succeed.

However, the motion failed after members of the ruling party boycotted the vote. Additionally, President Yoon also apologised for the decision, which he said “was born of desperation, and promised not to attempt to impose martial law again”. He added, “I leave it up to my party to take steps to stabilise the political situation in the future, including the issue of my term in office.”

Meanwhile in a deeply divided society engulfed with gender inequality,digital sex crimes, citizens have expressed frustration over rising living costs, youth unemployment, and perceived corruption. Legislature has also been under gridlock because of issues, including the Itaewon’s Halloween disaster, accountability bill and corruption investigations.

These have become battlegrounds for the ruling party and the opposition. These disputes reflect a broader inability to reach consensuson policies, fuelling political divergences. The disconnect between political elites and the public has amplified calls for reform and account ability. Social Crises and Future Scenarios Amidst the ongoing uncertainty and upheaval, if the ruling and opposition parties fail to find common ground, ROK could face extended political instability. This may impede legislative progress, weaken These challenges, deeply rooted in its political evolution and societal transformations, have tested the nation’s resilience and capacity fore form. From the scars of its authoritarian past to the growing pains of its democratic maturity, ROK’s crises reflect the complex interplay between its socio-political structures and rapid modernisation.

Its rapid economic growth, while impressive, has contributed to significant social disparities. Widening income inequality, youth unemployment, and soaring housing prices have led to mounting frustration, particularly among younger generations. Many in the country feel trapped in a hyper-competitive society where opportunities are disproportionately concentrated among the elite.

The term “Hell Joseon” has emerged as a cultural expression of this frustration, reflecting a sense of disillusionment and dissatisfaction with social mobility. Issues such as underemployment and the pressure of academic and professional success have contributed to high levels of mental health challenges, including depression and one of the world’s highest suicide rates.

Social inequality has also fuelled political discontent. For instance, protests surrounding housing policies and labour reforms have brought attention to the gap between promises of fairness and the reality of economic policies that favour established elites. Public dissatisfaction with the government's handling of these issues has sometimes led to political instability and polarisation.

Another layer of social tension in ROK comes from gender and generational divides. Women have increasingly demanded gender equality in a society that remains deeply patriarchal. The ‘Me Too movement’ in ROK gained significant traction, challenging traditional power structures and exposing systemic misogyny. However, a back lash from conservative groups and a rise in anti-feminist sentiment, particularly among young men, have intensified social polarisation.

Generational divides further complicate the social fabric. Older generations, who lived through the Korean War and the authoritarian era, often emphasise hard work and sacrifice. In contrast, younger South Koreans, burdened by economic hardships and societal pressures, are more sceptical of traditional values and demand systemic reforms.

These multi-faceted challenges may also act as a catalyst for change. Public pressure may push leaders to enact reforms addressing corruption, inequality, and government transparency, strengthening democratic institutions. Internally divided, ROK’s social and political challenges are compounded by its unique geopolitical situation. The ongoing tension with North Korea remains a persistent security crisis. Periodic military provocations and nuclear threats from the North create an atmosphere of uncertainty, impacting domestic politics and public morale.

Additionally, ROK’s position between major powers like the United States and China presents diplomatic challenges. Balancing its alliance with the U.S. while maintaining economic ties with China has led to political debates over foreign policy. Amidst these controversies, a unified political front is crucial for effective diplomacy.

Conclusion Despite these crises, ROK has repeatedly demonstrated its resilience and ability to adapt. Its vibrant civil society, independent judiciary, and active media have played pivotal roles in addressing political corruption and advocating for social justice. Moreover, grassroots movements, such as the Candlelight Revolution, highlight the population’s commitment to holding leaders accountable.

Moving forward, addressing the root causes of inequality and differences will be crucial for its social stability. Transparent governance, economic reforms that promote fairness, and policies that bridge generational andgender divides can help mitigate tensions. Moreover, sustained efforts to strengthen democratic institutions and protect freedoms will be essential for ensuring long-term political stability.

ROK’s current political turmoil reflects deep-seated challenges within its democratic framework. While the situation poses risks of prolonged instability, it also offers an opportunity for leaders to priorities unity and reform. The path forward will depend on the willingness of political actors to engage in meaningful dialogue and the strength of civil society to demand accountability.